Trans-Pacific trade negotiations 'on track'

The latest round of negotiations in the ambitious nine-nation Trans-Pacific Partnership agreement concluded in Melbourne this week, with members suggesting the deal was on track ahead of the year-end goal for completion.

Australia's chief negotiator Hamish McCormick refused to offer a date for its completion but said that the 11th round of talks brought substantial progress in the areas of regulatory adherence, the deepening of regional supply chains and the promotion of development.

"We have made further strong headway over the past nine days," said Mr McCormick. "With the progress we've made this week and the plans for the future, we believe TPP negotiations remain on track to conclude negotiations of the comprehensive 21st century agreement."

The TPP aims to lower trade barriers between nine Asia-Pacific nations including Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the US and Vietnam.

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The Department of Foreign Affairs and Trade estimates that the TPP could account for annual trade totalling $US17 trillion in 2010 terms. Member countries have expressed hope for finishing the deal by the end of 2012.

Interest in the partnership increased in November after Japan signalled its interest in possibly joining the group. Canada and Mexico have also expressed interest. The importance of the TPP stems both from the rapid growth of the Asian region, as well as the failure of the World Trade Organization to advance trade negotiations.

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Although Australia’s largest two-way trade partner China has not been invited to join in the initial round of the TPP, Mr McCormick said the group’s goal, once an agreement is reached, is to expand in the region.

“We wish to see TPP expand over time to all those Asian-Pacific nations or economies that are interest in joining our endeavour,” he said, responding to a question about potential involvement by China.

"None of the countries or economies showing interest in the TPP have been invited,” he said. “This is basically a self-selection exercise where economies who are interested talk and observe what's happening in TPP and will make their own decisions about whether they share the same sorts of goals and aspirations that the current nine parties do."

Local economists have said Australia stands to benefit by diversifying Australia’s trade flows across the Pacific, however, civil society groups are wary aspects like investor state dispute settlement provisions being considered in the trade deal.

ISDS allow businesses foreign businesses to have the option of dealing with legal issues in courts outside the country where the dispute arises, in effect sidestepping the local courts.

Another key sticking point is intellectual property rights related to medical technology, with civil society groups in Australia wary of proposals that would restrict access to inexpensive medicine.

Minister for Trade and Competitiveness Craig Emerson said this week that Australia opposes any such provisions.

"The Australian government has been clear from the outset of negotiations that it will not countenance any outcome which undermines the integrity of the pharmaceutical benefits scheme," he said.

"Australia will not permit outcomes which limit the availability of generic drugs, or any which compromise Australian health policy."

The next round of negotiations of the TPP is expected to be in May, said Mr McCormick. Although the location has not been been decided on, observers have speculated it could be held in the US.